Back Office Services are one of the most important services for any company. Back office manages the paperwork for any business. These services are not the front-line functionalities but supporting functions that enable the front-line functions to run smoothly. These services are known to increase the efficiency of the company exponentially. They also provide an easy way to access and store data during the function of core services. Back Office services are thus very important to any organization. Although it does not affect the revenue of the company directly, its performance can produce great results for the company.
These services are usually outsourced by the companies in order to avail professional quality of services. This relieves them of the pressure of cost as well as the performance of these services. But a lot of companies who want to have complete command of their back office process choose to perform these services in-house. In-house back office services although provide complete control over the performance come with some challenges. Here are a few challenges that In-house back office services will face in the fiscal year 2018-2019:
1. Infrastructure cost overhead
Infrastructure cost of these operations is very high due to the specialized and sophisticated nature of these operations. This cost is too much for any company to spend on a non core functions and therefore the companies neglect or rather cannot afford the infrastructure cost for these operations. This deflates the efficiency and productivity of the operations and a lot of efforts will be required to reach the industrial standards in these services which is highly improbable due to the lack of expertise of the companies in this department.
2. Lack of skilled workforce
The workforce is the back bone of any company. Any service that the company performs requires skilled and experienced workforce for optimum performance. When outsourcing back office services, workforce management is looked after by the outsourcing partner. But when opting for in-house back-office services, the cost and burden of hiring a skilled and experienced workforce comes upon the company itself. This can burden the company too much and its core functionalities can crumble due to it. Thus a company must look to optimize their hiring process with rigorous tests and interviews and formulate a cost optimized selection procedure that reduces the burden that the company has to bear.
3. Time taken for synchronization of the workforce
Synchronization of workforce is the most important aspect to any company’s performance. A synchronized workforce can increase the efficiency by 80% or more. Thus the workforce needs synchronization and conditioning to work as a team. A team gets synchronized after a lot of efforts. Employee retention, employee satisfaction must be promoted by the company. This helps to retain their employees for a longer time. In-house services help in synchronizing the workforce but prove to be very costly for the company. Thus a company looking to perform in-house back office services must always ensure that their employees are satisfied and don’t want to leave the company. This helps in synchronization of the workforce and better performance hence.
4. Training Cost for Workforce
With newer innovations each day and new tools and techniques being invented and implemented in the market every day, a company must look to move forward with the advances made. One of the best ways to do so is to train the workforce in order to upgrade and hone their skills which help in the better performance of the tasks that the company performs. The training although yields great results for the company, can cost way too much than the company can practically afford on this task. This can put a lot of pressure and dent the performance of other tasks due to the lack of resources. Thus a company must look to optimize its training course curriculum by opting to train the employees in selectively picked subjects that are relevant to the requirements of the company and nothing extra is delivered.
5. IT assistance cost
Information Technology is one of the most rapidly developing fields of science and today it touches each and every domain of the industry . Back Office services are no different. Specialized software to perform tasks with far more efficiency has revolutionized the back office business. The back office services today are enabled to digitize the paperwork of any company as well as store it in an easily retrievable format as per the requirements of the company. Thus IT assistance is an unavoidable aspect of any back office. Availing IT assistance can help a company but puts a lot of overhead cost on it. Thus a company must make sure that the IT advances they make are good enough to compensate the cost of the IT services. This will help them in negating the IT cost by the help they get from their IT services.
6. Cost of errors
Errors are a common occurrence in back office services. When a company chooses to outsource back office services, they do not have to worry about the errors and have to pay only for the correct results. But when a company chooses to perform back office services in an in-house environment, they also have to bear the cost of errors that occur during the performance of these processes. Too much carelessness can cost the company a fortune. Thus steps should be taken to minimize errors without compromising on the speed of performance. This can help the company move forward at great pace and help them achieve their endeavors in quick time.
Conclusion
Back Office services are one of the most important services that a company performs. These services have proven to be one of the most beneficial supporting services. These services lay the foundation for success of any business. The better the performance of these services, the better will be the performance of the business. Thus a company must put efforts in performing these services with high efficiency.
For any company that is trying to perform back office services in an in-house environment, there is an advantage of having control on the operations but there are also a few challenges that come with it. The challenges are so big that most of the companies in the industry choose to outsource back office services rather than perform them in-house. But if a company wants to perform these services, they should be ready to face these challenges. They should negate their effect with their performance in order to grow at a rapid pace.
The above-mentioned challenges are forecasted to emerge during the in-house performance of back office services in the fiscal year 2018-2019. The companies must prepare themselves to face these challenges. They should take necessary steps to overcome them and succeed in the industry. If these challenges are a way too much for the company, they always have an option to outsource these services and free themselves from the pressure of overcoming these challenges.
About Us
At SSR TECHVISION, we provide best in the industry back office outsourcing services. We have a highly skilled workforce that undergoes regular extensive training in order to hone their skills. We have delivered our services to numerous clients and have played a pivotal role in their success. At SSR TECHVISION, we consider ourself as a client-centered organization and are always dedicated to provide best possible services to our clients. We provide both data entry and data conversion services as a part of our back office services.
